Williams Companies Inc (WMB)
Return on total capital
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 5,420,000 | 4,804,000 | 4,647,000 | 4,342,000 | 3,621,000 | 3,522,000 | 3,045,000 | 3,130,000 | 3,207,000 | 2,553,000 | 2,755,000 | 2,748,000 | 1,462,000 | 1,514,000 | 1,396,000 | 1,386,000 | 2,371,000 | 1,422,000 | 1,417,000 | 1,175,000 |
| Long-term debt | US$ in thousands | 25,713,000 | 23,895,000 | 24,409,000 | 24,412,000 | 22,554,000 | 21,911,000 | 21,520,000 | 24,301,000 | 27,768,000 | 22,362,000 | 27,643,000 | 26,798,000 | 27,043,000 | 26,000,000 | 22,949,000 | 22,531,000 | 25,319,000 | 25,234,000 | 22,274,000 | 24,449,000 |
| Total stockholders’ equity | US$ in thousands | 12,402,000 | 11,845,000 | 11,679,000 | 11,785,000 | 11,485,000 | 11,319,000 | 11,226,000 | 11,316,000 | 11,423,000 | 11,198,000 | 11,512,000 | 11,702,000 | 11,769,000 | 12,065,000 | 12,212,000 | 12,354,000 | 13,363,000 | 13,621,000 | 13,848,000 | 14,406,000 |
| Return on total capital | 14.22% | 13.44% | 12.88% | 12.00% | 10.64% | 10.60% | 9.30% | 8.79% | 8.18% | 7.61% | 7.04% | 7.14% | 3.77% | 3.98% | 3.97% | 3.97% | 6.13% | 3.66% | 3.92% | 3.02% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $5,420,000K ÷ ($25,713,000K + $12,402,000K)
= 14.22%
Williams Cos Inc's return on total capital has shown a general upward trend over the past eight quarters. The company's return on total capital increased from 9.39% in Q1 2022 to 13.23% in Q2 2023, indicating improved efficiency in utilizing its total capital to generate profits. This positive trend suggests that Williams Cos Inc has been able to enhance its profitability and competitiveness over the periods analyzed. The company's ability to maintain a return on total capital above 10% consistently demonstrates effective management of its capital resources and indicates a strong financial performance.
Peer comparison
Dec 31, 2023